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Infrastructure & PPPs in Singapore, Laos and Cambodia - Q1 2022 Update

YOG INFRA Q1 2022 insights

SINGAPORE is taking steps as per Green Plan to promote C&I solar, EVs and importing green energy in the country. LAOS has continued focus on transport sector and development of solar projects through PPPs. CAMBODIA continues to see support from international developers and DFIs for infra sector development.

Read the latest developments in Infrastructure and PPPs in the three countries in our final insight of Q1 2022 series.

 

SINGAPORE

JV COMPANY REGISTERED FOR THE CROSS ISLAND LINE RAIL PROJECT IN SINGAPORE

Singapore Engineering & Construction, the wholly-owned subsidiary of BBR Holdings, has registered a joint venture (JV) partnership with China-based Sinohydro Corporation for the development of the Cross Island Line (CRL) rail project in Singapore. Both the partners will own an equal stake in the JV company named Sinohydro-Singapore Engineering & Construction. The JV will be responsible for overseeing the design and construction of the Pasir Ris East train station, as a part of CRL’s first phase of construction.

Sinohydro-Singapore Engineering & Construction presently does not have any capital contributions, and its primary activities include the construction of a building, a tunnel road, and other civil engineering projects in Singapore.


TERRENUS AND DIGO SECURE 70 MWP SOLAR LEASING TENDER IN SINGAPORE

Terrenus Energy, a renewable energy solutions provider, and Digo Corporation (Digo) have secured a tender to install 70 MWp of solar panels across housing buildings and government sites in Singapore.

Under the terms of the tender, the partners will install solar photovoltaic (PV) panels across 1,198 housing blocks and 57 government locations, as well as install smart electrical sub-meters at the housing blocks. Installation works are planned to begin in the third quarter of 2022, with the PV systems starting operations by the first quarter of 2025.

The leasing tender was held under Singapore’s SolarNova programme, which is led by the Housing Development Block (HDB), the country’s public housing authority, along with the Singapore Economic Development Board (EDB). The scheme is targeting 540 MWp of solar installed on HDB blocks by 2030. Its seventh round, for 75 MWp of capacity, kicked off in February 2022.


AURECON SECURES CONTRACTS FOR WORKS ON 144 MWP FLOATING SOLAR PLANTS IN SINGAPORE

Aurecon has secured a contract from the Public Utilities Board (PUB) to conduct preliminary engineering design and feasibility studies for two proposed floating solar photovoltaic (PV) system with a capacity of 100MWp and 44MWp at the Lower Seletar Reservoir and Pandan Reservoir in Singapore. The company will also conduct a business model analysis in order to identify an appropriate model for implementation.

Environmental studies will also be conducted by PUB in preparation for deployment in Lower Seletar Reservoir. If results of the feasibility study are satisfactory, Aurecon will also prepare pre-qualification documentation and request for proposal, provide tender support and provide professional advice and support throughout the project’s construction.


LAOS

FLC AND PETROTRADE TO CONSTRUCT USD 5 BN RAIL LINE BETWEEN LAOS AND VIETNAM

FLC Group has signed a memorandum of understanding (MoU) with Petroleum Trading Lao Public Company (Petrotrade) to construct a rail network in Vientiane connecting Vietnam and Laos. The 555 km rail project from Vientiane in Laos to Vung Ang Port in Vietnam is expected to cost approximately USD 5 Bn and construction is scheduled to commence during Q4 2022.

FLC will undertake construction work on the 103 km stretch from the Cha Lo border to the Vung Ang seaport while the Laos section of the line will be built by PetroTrade.

The rail project is expected to boost the port’s transshipment capacity as well as increase trade volumes between Vietnam and its neighboring countries.


ELECTRICITY AGREEMENT SIGNED BETWEEN CHINA AND LAOS

China Southern Power Grid (CSG) and Electricite du Laos (EDL) have signed an electricity agreement in a bid to boost energy cooperation between China and Laos and revive local long-abandoned water and electricity infrastructure. This agreement is also supported by China’s National Energy Administration (NEA) and the Ministry of Energy and Mines (MEM) of Laos.

The partners will establish electric grid interconnections in the Lancang-Mekong Region and develop a shared electricity market in the region. This energy cooperation is expected to solve the electricity shortage and increase the export of surplus electricity to neighbouring markets from Laos.


GOVERNMENT OF LAOS TO UPGRADE THE COUNTRY’S ROAD NETWORK

The Government of Laos has announced that it will upgrade the country’s road network and build additional expressways to improve logistics. Some of the road infrastructure projects include an expressway between Boten and Huayxai district in Bokeo province and a survey, feasibility study and detailed design plan are currently underway on the section.

A feasibility study for sections 1, 2, 3, and 4 of the Vientiane-Pakse Expressway is also being conducted, although the memorandum of understanding for section 5 has been cancelled due to the concessionaire’s failure to comply with the requirements.

Other feasibility studies currently underway includes the new highway between the 3rd Lao-Thai Friendship in Thakhaek district and the Vietnamese border in Khammuan province as well as an expressway linking Thangon village in Vientiane’s Xaythany district and Sanglek village in Vientiane’s Thoulakhom district.

The Ministry of Public Works and Transport (MPWT) is also upgrading the National Highway Number 9 between Kaysone Phomvihane city and Xeno on the Laos-Vietnam border. In Xaychamphon district, an expressway is being built from Pakxan district to the Vietnamese border.

Two new bridges on the Mekong River are currently also under construction including the 5th Lao-Thai Friendship Bridge and the Kontuen-Huaykeo Bridge in the Bokeo province.


THE STATE RAILWAY OF THAILAND TO CONSTRUCT A BRIDGE CONNECTING NONG KHAI AND LAOS

The State Railway of Thailand (SRT), under instructions from the Government of Thailand, will construct a second bridge across the Mekong River to connect the province of Nong Khai and Laos. SRT is currently seeking immediate funding for the construction of the bridge that will link with the China-Laos railway.

SRT will examine and present a bridge design as part of the next phase in the development process. Following that, the railway operator will provide a budget for the bridge’s construction.

The new bridge is expected to support cargo transport through Thailand, Laos and China on the transnational railway.


GOVERNMENT OF LAOS TO DEVELOP 50 SOLAR POWER PLANTS

The Government of Laos has approved feasibility studies and the construction of 58 solar power plants, with a combined installed capacity of 7,656 MW, across the country. Works on eight of the solar plants have already been completed while the remaining 50 projects are under construction. The projects will include large-scale solar projects as well as solar power for self-consumption, rural development and agriculture.

Once these projects are connected to the national grid, it will aid the government’s effort to enhance Cambodia’s energy exports and reduce electricity re-imports from neighboring nations during the dry season. Solar power capacity in Laos is predicted to range between 10,000 MW and 15,000 MW by 2030, while wind power potential is estimated to be about 100,000 MW.


Cambodia

TRINA SOLAR AWARDED CONTRACT FOR 40MW SOLAR PROJECT IN CAMBODIA

Trina Solar Company Limited has secured a contract from Electricité du Cambodge (EDC) for works on a 40 MW solar project in Kampong Chhnang province, Cambodia, as part of a tender for a national solar park project. Land and transmission access will be provided by EDC, and electricity generated by the solar project will be purchased under a long-term power purchase agreement (PPA).

The tender, which has a designed capacity of 100 MW, was issued to promote the use of low-cost power production, diversify Cambodia’s power mix as well as increase the share of clean and renewable energy in the country’s power production.

The tender process for the solar park project was executed in two phases. The first phase, with a capacity of 60 MW, was awarded in 2019, while the contract awarded to Trina Solar is part of the second phase of the program.


UNDP TO BUILD FIRST EV CHARGING STATIONS IN CAMBODIA

The UN Development Programme (UNDP) has agreed to build the first set of electric vehicle (EV) charging stations in Cambodia, under a request from the Ministry of Public Works and Transport (MPWT). UNDP will install five charging stations, with one of the chargers deployed at the MPWT headquarters in Phnom Penh and the remaining four stations deployed in locations around the capital and provinces.

The government is also developing regulations to assist EV rollout in Cambodia, including battery stations, charging stations, mechanics, spare part distributors, skilled technicians, and expanded facilities and capacity for battery disposal.

This move will promote the use of sustainable mobility in Cambodia as well as help achieve the government’s target of carbon neutrality.


UPGRADE WORKS COMMENCES ON THE 148 KM NATIONAL ROAD IN CAMBODIA

Upgradation works have commenced on the 148 km National Road 48 in the Koh Kong province, Cambodia. The road is a part of the ASEAN Highway No. 123, which starts in Vietnam and ends in Thailand. The USD 65.14 Mn highway project will be financed under a grant from the Government of Korea provided through the Economic Development Cooperation Fund (EDCF), the country’s official development aid (ODA).

The new NR 48 will feature four lanes over a 25.1 km section of the highway and two lanes for the remaining 122 km. Additionally, four new bridges and 140 culverts will be added to increase traffic capacity and reduce the possibility of congestion. Traffic safety equipment will also be installed along the road. The project is expected to be completed in June 2024.

The old NR 48 was built to last for five to eight years if properly maintained according to technical requirements and if weight limits for vehicles were maintained. However, traffic on the highway has increased beyond initial capacity, with 3,339 vehicles each day, including 1,962 cars and trucks and 1,377 motorcycles.

 

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With our offices in Singapore and India, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.


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